Heartland Payment Systems to Offer New Visa Payroll Card; Innovative Prepaid Card Offers Low Cost, More Secure Alternative to Paper Paychecks

Business Wire, Feb 4, 2003

Business Editors

PRINCETON, N.J.--(BUSINESS WIRE)--Feb. 4, 2003

Heartland Payment Systems Inc., an emerging leader in the payments processing industry, has announced it will begin offering its small- and mid-sized business clients the new PayDay Visa(R) Card from Heartland as a payroll option to replace the paper paycheck process. PayDay Visa Card allows an employer to deposit an employee's pay directly onto a prepaid Visa card issued in the name of the employee. This innovative payroll solution is specifically designed for the 25 million employees in the United States who do not have a checking or savings account and the growing number of 141 million American workers who prefer to access their earnings via a payroll debit card.

The new signature and PIN-based payroll cards are aimed at helping employers reduce costs associated with producing, handling and distributing traditional paychecks as well as the re-issuance of replacement checks in cases of loss or theft. Visa estimates the potential cost savings alone for replacing lost, stolen or damaged paychecks is approximately $50 million annually.

"We believe our PayDay Visa Card, issued by Bank of America, a leading Visa payroll card issuer, strengthens our position in the marketplace as a 'total solution' provider for both credit card and 'all electronic' payroll processing services," said Mark Strippy, president of Heartland Payroll Co. "The savings and convenience to our clients along with the benefits for their employees and the power of the Visa brand are what make this card the right choice for Heartland and the best card-based payroll solution for our clients."

"Visa continues to lead the payment card industry with innovative solutions using prepaid card technology," said Todd Brockman, vice president of prepaid card products with Visa U.S.A. "The PayDay Visa Card from Heartland is the latest example of how we continue to provide innovative payment solutions and illustrates the ability of our new prepaid product category to meet the needs of both businesses and consumers."

An estimated 25 million employees or more than 12 million households in the United States do not have a banking relationship, requiring them to spend approximately $8 billion a year in check cashing and other financial services fees. Additionally, according to the American Banking Association, more than 70 million Americans did not qualify for a credit card in 2002 and thousands of others found themselves in over-extended credit positions, preventing both groups from using "cashless" purchasing.

The PayDay Visa Card from Heartland provides both employers and employees with a cost-effective payroll solution, which eliminates the need for workers to wait in long lines at check-cashing centers and carry large amounts of cash. Cardholders can withdraw cash as needed from ATMs or use their card to shop wherever Visa is accepted. The PayDay Visa Card is also accepted on the Internet and helps to bridge the digital divide by allowing cardholders who have never owned a payment card to engage in e-commerce.

For those living in a "cash and carry world," the PayDay Visa Card from Heartland can add tremendous value with significant security. The card is safer than carrying cash and can be replaced if lost or stolen, as all of Visa's consumer security protection policies apply to the PayDay Visa Card, including its Zero Liability policy. Additionally, the PayDay Visa Card is a valuable money management tool as cardholders can also more easily track their expenses using detailed monthly statements, helping them to better manage their money.

About Heartland Payment Systems

Heartland Payment Systems Inc. (HPS) -- Your Hometown Payments Provider -- is a full-service payment systems solutions provider, handling merchant card and payroll processing services for merchants of all types and sizes. Using a national sales force, HPS builds long-term business relationships in local sales territories providing merchants with enhanced technology tools that assist them in more effectively operating their businesses.

In 2002, Heartland Payment Systems was ranked No. 57 in Inc Magazine's 500 List as one of the fastest growing private companies in the United States. For more information about HPS, please visit them online at www.heartlandpaymentsystems.com.

About Visa U.S.A.

Visa is the world's leading payment brand and largest consumer payment system, enabling banks to provide their consumer and merchant customers with a wide variety of payment alternatives. More than 14,000 U.S. financial institutions rely on Visa's processing system, VisaNet, to facilitate over $915 billion in annual transaction volume -- including roughly half of all Internet payments -- with virtually 100 percent reliability. U.S. consumers carry 376 million Visa-branded smart, credit, commercial, prepaid and check cards, accepted at approximately 24 million locations worldwide. Visa's people, partnerships, brand, payment technology and security standards are helping to create universal commerce -- the ability to safely conduct transactions anytime, anywhere, anyway. For more information about Visa, please visit them online at www.visa.com.